THE IBERIAN DIVIDE

This month's regional close-up looks at Spain and Portugal. As Sarfraz Thind discovers, the region's bond markets may be stalling but it's boom-time for structured credit

Spanish derivatives stand on the cusp

The Spanish credit derivatives market is at a crossroads. A law is due to be ratified in November liberalising the Spanish investment and derivatives industry. The new law is expected to open up the credit derivatives market to pension funds and insurance companies, which have so far been restricted in their ability to invest in these products.

"The new legislation should be positive for the market," says Juan Blasco, head of credit trading at BBVA in Madrid.